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Protection against unplanned time off

Tuesday 17th Mar, 2015

Just suppose you are off work due to an accident or sickness and it is a serious condition, this could well impact on your continued earnings capacity and the ability to fulfil your contract.

There are a number of things a contractor can consider to protect against this potential risk, such as:

Having a contingency fund readily available

Consider short term cover

Take out comprehensive cover

When you consider that your earnings underpin your lifestyle, it is important that contractors guard against this.

With an "income protection plan" contractors can ensure a continued income to support their financial commitments in the event of an accident or sickness.

The benefits and features of such prudent cover include:

Regular income payments

Tax free benefits

Payment until retirement

Multiple claims option

Low cost start

Fixed or increasing option

When considering such plans, a contractor should consider how long they could maintain their standard of living if their income was taken away, also you should weigh up the following:

Level of cover required (max 65% of earnings)

Deferred period (the time before the income starts (either 4/8/13/26 or 52 weeks)

Guaranteed or increasing premiums (age costed)

Finally this type of cover is usually paid via a monthly direct debit from the contractor's personal account to ensure no benefits in kind (P11D) are levied on the individual and that benefits can be paid out without any tax deductions.

For more information and a quote, call Haven Global Strategies Limited on